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Highlights
- Pacific Gas & Electric Co. (NYSE:PCG) posted revenue of US$5.47 billion, up 12% YoY, in the third quarter of 2021.
- ON Semiconductor Corp’s (NASDAQ:ON) net income grew 93% YoY to US$309.7 million.
- PCG stock fell 8.5% YTD, while the ON share gave a 65.08% return YTD.
Pacific Gas & Electric Co. (NYSE:PCG) and ON Semiconductor Corporation (NASDAQ:ON) declared their third-quarter results before the opening bell on Monday.
Third-Quarter Highlights
Pacific Gas & Electric Co.
Pacific Gas posted revenue of US$5.47 billion, up 12% YoY, compared to US$4.9 million in the third quarter of 2020.
The company booked losses of US$1,091 million compared to a net income of US$83 million in Q3 2020. The net loss per share was US$(0.55) versus earnings of US$0.04 per share in the September quarter of 2020.
The non-GAAP core earnings per share were US$0.24 compared to EPS of US$0.22 for the corresponding quarter of the previous year.
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Guidance 2021
The GAAP adjusted EPS is expected to be in the range of US$(0.12) to US$0.07 for the full year 2021. In addition, the reaffirmed non-GAAP core earnings to be between US$0.95 and US$1.05 per share.
PG&E Corporation is a holding company based in San Francisco. Its main subsidiary is Pacific Gas and Electric Company, an energy company that operates in Central and Northern California.
The Pacific Gas and Electric Company serves around 16 million customers in the state. It has a market capitalization of US$22.5 billion and a P/E ratio of 30.66. The stock traded at US$11.34, down 2.24%, at 11:07 am ET.
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Source – Pixabay
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ON Semiconductor Corporation
The company posted revenue of US$1,742.1 million, a 32% growth YoY. The gross margin was 41.4% in Q3 2021, compared to 33.5% in the same quarter a year ago.
The PSG segment revenue was US$892.1 million, ASG contributed US$613.5 million, and ISG segment revenue was US$236.5 million. The net income attributable to ON Semiconductor Corporation was US$309.7 million, compared to US$160.6 million for the third quarter in the previous year, reflecting 93% growth YoY.
Its operating income was US$399.2 million for the quarter ended October 1, 2021, compared to US$119.0 million for the same period in 2020. The GAAP operating margin was 22.9% for the third quarter of 2021 compared to 9% in the third quarter of 2020.
The company recorded GAAP diluted earnings per share of US$0.70, compared to US$0.38 in Q3, 2020. The non-GAAP EPS diluted was US$0.87 compared to US$0.27 a year ago. Its free cash flow was US$355.7 million or 20.4% of revenue in Q3 2021.
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Outlook for the fourth quarter
The GAAP revenue is expected to be between US$1,740 and US$1,840 million. The company expects the gross margin to be in the range of 41.8% to 43.8%. The EPS diluted is to remain between US$0.67 and US$0.78 for the fourth quarter, 2021.
The Phoenix, Arizona-based On Semiconductor supplies semiconductors and sensors. The company focuses on automotive and industrial-end markets.
In addition, the company is driving change in megatrends, including sustainable energy grids, automation, 5G, vehicle electrification and safety, and cloud infrastructure.
It has a market capitalization of US$23 billion and a P/E ratio of 44.49. The stock rose on the third-quarter results and traded at US$54.175 with a 12.70% gain at 11:48 am ET.
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Bottomline
ON profits rose as demand for semiconductors grew amid a severe supply shortage. On the other hand, utility services provider PG&E incurred losses in the third quarter. Likewise, ON stock gave a 65.08% return YTD, while PCG fell 8.5% YTD. Stock markets can be volatile; hence, investors should evaluate the companies carefully before investing in the stock market.
